Although the company had earlier planned to roll out car radio sets in the country by 2004, absence of a government policy on satellite radio has delayed the launch.
WorldSpace, US-based satellite radio company, is targeting middle of 2010 for launching car radio in India. Although the company had earlier planned to roll out car radio sets in the country by 2004, absence of a government policy on satellite radio has delayed the launch. If things go according to company plans, the product should be available well before the Commonwealth Games next year.
Speaking to DNA, WorldSpace managing director (India and Middle East) M Sebastian said, “Within 8 to 10 months of the policy, we will be in a position to roll out car radios.” Technology development for WorldSpace car radio has already been completed, Sebastian said.
The Union information and broadcasting (I&B) ministry has prepared a draft Cabinet note for the satellite radio policy, and is consulting other ministries before taking it to the Cabinet once the new government is formed. Network planning, drive test and frequency clearance for car radio will take about 8 to 10 months after the policy is firmed up.
Company officials are not talking about pricing yet as it would depend on several factors. But it would be certainly higher than the prices of the WorldSpace devices used indoors. A rough estimate suggests that a car radio would cost over Rs 5,000 in the Indian market.
WorldSpace, the only satellite radio platform available in India, is expected to strike partnerships with automobile manufacturers among others to bring in car radio. In countries like Italy, Germany, Switzerland and Bahrain, the company is entering into partnerships for the same.
While there’s no limit on FDI in satellite radio now due to lack of any regulation, the new policy is expected to cap FDI at 74%. WorldSpace would be given three years to comply with the guidelines. As of now, the company is keeping all options open—getting a strategic investor, a financial investor or an Indian media entity as the domestic partner.
But, before roping in a partner, the radio company wants to enhance its overall enterprise value by offering new services. And one such service is having an online presence, for which the company’s application has been around at the Foreign Investment Promotion Board (FIPB) in the finance ministry for several months now. WorldSpace wants to offer subscription-based online radio stations to the expat community.
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